Retirement Plans for Small Business. Are they Viable?

Entrepreneurs,
who started a small business, work long and exhausting hours and have
very little time to think about retirement plans.

I know. I was one of them.

It is only when the business is growing and you start hiring that the
question comes up! It is then that you realize that you'll have to find
out something about retirement plans specifically for small business.

Suddenly
it seems to be the key to success. The only way to attract and retain
talented employees. And this is where your headache start. This is where
you dilute your focus on things that you do well. Those things that
launched your business to the level where you need to hire.

The only positive thing about it is that it forces you to think about your own retirement! Most distracting.

After
too much time spent on investigations and presentations, I decided
against an employer-provided retirement plan. We hired our people as
self employed sub-contractors and we paid them considerably better than
our competitors.

Each person had to get his or her own self employment retirement plan.

This
strategy worked extremely well for several years. Until the company
became too big and with subsidiaries in various countries. There has
always been pressure. People wanted to have the security of employment
with employer-provided retirement plans. Not everyone has got an
entrepreneurial mindset.

Soon afterwards I retired and sold my shares.

Are there viable plans for small business?

Yes
there are. The so-called SIMPLE IRA or equivalent could be used in most
cases. But be aware that it's going to cost you considerably more than
money!